All Forum Posts by: Kathy Utiss

190,000/$250,000=76% LTV

.05% CLOSING COSTS

.05% REHAB/REPAIR TOTAL IS $209,000 LTV IS 86%

+ $30,000 TO SELLER Your Purchase Price ends up being $239,000

If you have any holding costs in the meantime that leaves $10,000

Now if you couldn't take this on yourself and had to forward to an investor he'd have to eat the $30,000 and sell it to you at $150,000. As $250,000 x .75=$187,500 The payment sounds nice on a 15 yr note. A lease option tenant leaves the owner on the hook if his debt isn't paid off.

Yes you may make a couple of bucks on the down payment from a lease option tenant but if something happens he's still holding the bag not you. I know some people do sandwich leases there are some pros. However, some back out after making such a deal. Then leave the owner on the hook. Then they'll do anything just to get out from underneath it the bank will accept. But he's trying to take a buyer for a ride in my opinion.

I'd try to find out what is due on the actual note before I pay a dime. Also, make sure owner isn't involved in a bankruptcy either. A s then the property will have to be bought thru his bk case/estate. Wish I had a better idea on good advice ;) 

I'm attempting to do new build on a fourplex. FHA has a decent program probably at least a 620 score needed. Fourplex I'm trying to build is a million dollars. Each will be five bedroom three bath. I've been told that it would be at least 3.5% down which is $35 000. Probably at least 10,000 for closing costs and whatever other fees they tack on. And 3 months of reserves. My biggest question was if you're allowed to use prospective tenants first and last month and deposits to do such. I got told this is possible that I think I would probably just stick to the deposits. Going FHA you would have to live in one of the four units. But it's one way to get a free house by having other people pay for your housing. If you have a score of 685 or more I got a friend who can write the note at 6% for 80% amortized over 30 10-year interest only balloon. You don't have to live in any of the units.

There is actually a shortage of homes in Nevada. We've been working with a couple of cities to do new build out there. There are a lot of entities wherein their employees need housing as well. Some of the companies offer a stipend to employees for housing. But the housing for employees is poor. Financing for such projects gets outrageous. Do do do and wait wait wait. One appraiser doing appraisals in a 5 or 6 hour journey.  People volunteer to invest then spend their money foolishly. Who does such things. We're talking 5/3 making $250 a night! With an endless supply to be built! 

There are actually two NACA groups. One is ran by supposedly consumer advocate attorney's that operate on a contingency basis. The other is Neighborhood Assistance Corporation of America. They were or are doing a lot of homeowner modifications. Didn't know they had such a program for investors. I'd recommend going FHA on a quad if you could. You could live in one and rent the others the way you want to manage them. Being in Orlando bet you could book a lot of daily/weekly or monthly rentals. Maybe a more experienced FHA person could fill you in as to how it works better. Kinda curious about it myself. I know what I qualify for on a regular residential property. But it probably wouldn't be enough to buy a quad without using rental income. I know it mandates living in it for a year but maybe longer if you want to have someone else pay your housing expense.

Buy, Rehab, Rent, Refinance,-Brrr

FHA loans are 3.5% down so on a purchase price of $65,000($2,275) and and ARV of $170,000 puts the property at a 38% ltv. There are some FHA loans that allow rehab money as well. Not sure what type of LTV they go up to though. Even if they go up to 60% that is $102,000. Is it something you can occupy while your rehab? You may also want to talk wit a HML. Some may go up more on the LTV. Do you have the costs for repairs? Have you figured out what your holding time might be?(Checking with a realtor for days on market for rentals could help) You know how long you intend the rehab to take? Investors will want to know how long they will need to have their money tied up. I would think there would be others to chime in. Even if you don't have cash how is your credit? That always helps along with a stable job that allows more than necessities. Hope it helps some

Kinda confused where you get such numbers. Or how buyer is doing financing. Being a quad it qualifies for FHA financing. Usually is 3.5% down. $900,000 x 3.5% is only $31,500. According to this

Generally, the most you can borrow with an FHA loan is $420,680. That applies to single–family homes, with limits increasing for 2–, 3–, and 4–unit properties and in higher–cost counties. The maximum FHA loan amount for a 1–unit property in a high–cost area is $970,800. And for a 4–unit home, it's nearly $2 million. Dec 8, 2021

Is this anything they've considered? 

Couldn't hurt to find out. Then you know what you qualify for when you do start looking. You should determine how you will be going about such a purchase. Using FHA could be a good way to go. As you only have to come up with 3.5% down. I'd do it as a owner occupied property. Also using FHA you can go up to a 4 unit building vs a single family. Hence, you could live in one and collect rent from 3.

oops would be $7,000 down...$200,000 x .035=$7,000

Well investors will sometimes have a home owner do a quit claim deed. Then assume the payments. Basically, until payment is received on the property you could effect your grandma if not paid on time. Sometimes it's considered a DIL-Deed in Lieu of Foreclosure. Investors may consider it a sandwich lease as well.

The hitch is grandma is on the hook until the cash is received to pay off the note she created. FHA is a good way to go for a low down payment unless your a vet. So it would be done as a purchase sale. With FHA it's 3.5% of purchase price down.

Example: 

Purchase Price $200,000 x .03%=$6,000 down payment 

200,000/360=$556 principal

200,000 x .04%=$8,000/12=$667 interest rate @ 4%

taxes 2,000/12=$167 

ins $2,000/12=$167

Total house payment $1,557 per month 

They will go from between 42 to 50% on your DTI-Debt to income ratio

The DTI is gathered from your secured assets- house, car, credit cards, student loans

A good FHA loan officer shouldn't have a hard time qualifying you if your earnings are easily verified and you have a good banking track record. They will want paycheck stubs and bank statements.

1. Generally, all property must be taxed based on its current market value. That’s the price it would sell for when both buyer and seller seek the best price and neither is under pressure to buy or sell. The Texas Constitution provides certain exceptions to this rule, such as the use of “productivity values” for agricultural and timberland. This means that the land is taxed based on the value of what it produces, such as crops and livestock, rather than its sale value. This lowers the tax bill for such land.

https://gcad.org/frequently-as...